Rural

Purchase of Land

The objective of the scheme is to finance farmers to purchase, develop and cultivate agricultural as well as fallow & waste lands.

Establishing/ diversifying into other allied activities.

Eligibility

Small & marginal Farmers i.e. those who would own maximum of 5 acres of non-irrigated land or 2.5 acres of irrigated land including purchase of land under the scheme. Share Croppers and tenant farmers can also be eligible under the scheme.

Women/ SHG members.

Quantum of finance

It will depend on area of land to be purchased and its valuation and also development cost.
The last 5 years average registration value available with the Registrar/ Sub-Registrar of the areas and a view taken by the Bank.

Security

The land purchased out of bank finance to be mortgaged in favour of the Bank

Margin

Loan upto Rs.1.00 lakh - Nil

Loan over Rs.1.00 lakh – 20%

Rate of interest

Interest Rate as decided by the Bank from time to time.

Repayment

Loan may be repaid in 7 – 12 years in half yearly/ yearly installments including maximum moratorium period of 24 months.

Location of Holding

The farmers may be allowed to purchase land within the village boundary or in a radius of 3 to 5 kms. near land owned by them.